How to Sell an Apparel Knitting Mill


Are you putting together a strategy to sell your apparel knitting mill? The apparel knitting mill has declined significantly over the past decade, but many companies still receive strong valuations and fair market offers due to the anticipation of a bounce back for the industry. Below is a detailed guide to determine your company’s value and a review on how to sell an apparel knitting mill for fair market value. 

About The Apparel Knitting Industry

The apparel knitting mill is largely dominated by several dozen companies. It involves manufacturing fabric and apparel, an industry that is widely considered stable with solid growth potential. Here are the most notable industry numbers:

  • There are approximately 100 apparel knitting mills in the U.S. 
  • There was a -3.0% annual growth for the apparel knitting industry from 2018 to 2023
  • The apparel knitting industry generates $259.8 million in annual revenue
  • The annual profit for the apparel knitting industry is $8.6 million
  • Experts predict an increase in annual growth (0.9%) from 2023 to 2028


There is no denying the significant decline in sales for the United States apparel knitting industry as many manufacturers have outsourced these services to mills in other countries that offer low-cost services. However, many expect the industry to recover as the demand for American-made apparel increases. 

You should also check: How to Sell a Blood and Organ Bank

How Much is My Apparel Knitting Mill Worth?

The first step to selling an apparel knitting mill is determining its value. An accurately-priced business can ensure you receive competitive offers and reduce the time your business goes without selling. It also helps ensure you are not selling beneath fair market value. Acquisition multiples, or rule of thumb data, are one of the main ways business brokers determine your value. Acquisition multiples are calculated averages for recent sales data of apparel knitting mills. This data includes:

  • Apparel knitting mills sold for approximately 0.64 of the annual net sales

As can be seen, your SDE, EBITDA, and net sales are vital to determine your value. However, there is much more that goes into a business valuation. Other valuation considerations include (but are not limited to) your geographic location, the condition of your equipment and machinery, the value of your real estate (if you own your mill), your unique advantage within your industry, and your reason for selling. 

The Sales Process for Apparel Knitting Mills

There are five primary stages you will experience when you sell an apparel knitting mill. These five stages include: 

  1. Valuation stage
  2. Preparation stage
  3. Marketing stage
  4. Due diligence stage
  5. Closing stage

All business sales are unique, so your sales journey may differ from the standard process. However, it is helpful to have a general understanding of each stage before you begin the sale. Below is a closer look at each stage. 

The Valuation Stage

We discussed what goes into a professional business valuation for an apparel knitting mill above. This is a vital first step that owners should take when planning their exit strategy. All business owners must understand their business valuation regardless of their long-term strategy. At Sigma Mergers and Acquisitions, we also recommend business valuations for succession plans, estate and gift taxes, buy and sell agreements, divorce, and insurance purposes. The type of valuation may vary based on your purpose. For example, a business valuation to plan your exit strategy most notably includes a market valuation to determine fair market value for your apparel knitting mill.

The Preparation Stage

For many business owners, it is tempting to rush to the market if they receive a high valuation. Timing is important, and it may, in some cases, be the best choice to go to sell as soon as possible. However, the preparation stage is still essential. During this stage, you will gather all needed documents and establish your financial and operational sales goals. 

The Marketing Stage

The best business brokers utilize innovative strategies to maintain confidentiality and find a qualified buyer for your apparel knitting mill. Techniques that your business broker may employ include:

  • The use of private networks
  • Direct contact with prospective buyers
  • Searching private databases
  • Referral requests from industry professionals


Business brokers have access to hundreds of potential buyers, many of which are willing to pay fair market value for your apparel knitting mill. They screen offers as they arrive and discuss the details of each offer with you, so you can make an informed decision as to who is best to take over your apparel knitting mill and continue your long-term vision for the company. 

The Due Diligence Stage

The good news is you have secured a buyer who has already signed a letter of intent (LOI). However, there is still a fair amount of work left between both parties. The due diligence stage is an opportunity for the buyer to:

  • Review all details of the purchase 
  • Ensure all legal requirements all met
  • Verify financial information 
  • Conduct a walk-through of the mill


This is a relatively open process where the buyer can request the documents they need to move forward with the purchase agreement. However, this process should not drag on for months (although in far too many cases it does). 

Both the buyer and the seller should work in an organized and structured fashion so they can move to close as quickly as possible. As the seller, there are steps that you can take to ensure a fast due diligence process. Most notably, you should prepare all documents, such as your tax returns, profit and loss statements, revenue sheets, list of employees, a copy of your lease or rental agreement, a copy of your insurance policy, and more. 

The Closing Stage

The business sale closing is the final stage in which the final signatures for the purchase agreement are attained and the business is transferred to the buyer; the seller collects the payment for the sale during this stage. Your attorney will likely attend the closing to ensure all goes well. In many cases, the seller’s business broker attends as well. The buyer will also have their attorney review all documents and ensure the process goes smoothly. The buyer’s financial institution may be present, especially if they receive financing. 

Speak With an Experienced Business Broker at Sigma Mergers and Acquisitions

Contact the sales experts at Sigma Mergers and Acquisitions to schedule a consultation and learn more about how to value and sell your apparel knitting mill. We are more than happy to answer any questions and concerns you have regarding selling your business during the initial call, and we can assist you in planning your exit strategy. 

Scot Cockroft Business Broker
Hi, I’m Scot Cockroft.

When I founded Sigma Mergers and Acquisitions back in 2003, I had sold my business the year prior.

Now, that can sound good, but let me tell you, back in 2003, it was not easy to sell a business. Not that I’m saying in modern day times it’s easy to sell a business, but back then I interviewed broker after broker after broker, and no one was interested in actually seeing the value that my business brought to the table.


Ready to get started?

Ready to Get Started?


Sigma is a the leading business broker in with Corporate offices in Dallas/Fort Worth with roots from 1984. Over 600 businesses sold in Dallas, Fort Worth, Texas, Oklahoma and across the South. Sigma provides full business brokerage services with NO upfront fees. We provide Market approach business valuations for business sales. Sigma is passionate about helping business owners achieve their goal of financial security. Contact us today for a free no obligation business valuation. We are here to help you achieve your goals.

Our Address

(214) 214-9400
Corporate Headquarters in Dallas

Quick Links